Industry Archives: Mining


Russia’s Norilsk Sells Stakes in African Nickel Mines for $337 Million

Moscow Times
Gaborone — Russia’s Norilsk Nickel, the world’s top nickel and palladium producer, said it had agreed to sell stakes in two African nickel mines for $337 million to BCL, a Botswana-based copper mining firm looking to expand.

Norilsk will transfer to BCL its 50 percent interest in the Nkomati nickel and chrome mine, in South Africa, and its 85 percent stake in the Tati Nickel Mining Company, in Botswana, the two companies said Monday.

BCL will also assume all attributable outstanding debt and environmental and rehabilitation liabilities associated with the assets.

Norilsk embarked on a new strategy last year that includes pulling out of international assets that it has identified as non Tier-1 mining operations. Tier-1 is an industry designation for what are typically the biggest and lowest-cost mines.

“The sale of the African operations marks a major milestone in our commitment to deliver the new corporate strategy. The transaction is part of the management’s roadmap to release capital from non-core assets and will have a positive impact on the company’s return on invested capital,” Pavel Fedorov, Norilsk Nickel first deputy CEO, said in a statement.
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African Tantalum Mine and Plant for Sale

This opportunity involves the acquisition of a Tantalum mine and an operational Plant/Company during a privatization.

Company Overview:
Company was established in year 2000 in accordance with the Commercial Code of the local African government. The Company has a capacity of 215 tons per annum and 475 permanent employees. With current prices, annual revenues could reach around $40mn (without any expansionary efforts). The Company was very recently replenished and restarted operations.
Mine reserves are estimated at 17,000 tons of Tantalum Pentoxide. Acquiring this mine will allow the operator to control 9% of the global Tantalum production.

Company Mission:
• Engagement in prospecting, exploration and evaluation of mineral deposits excluding petroleum, natural gas and geothermal energy
• Development of economical mineral deposits
• Constancy services in the field of mineral exploration and evaluation
• Offering exploratory services such as; core drilling, and ground and bore-hole geophysics, surveying, chemical analysis, and geological investigations
• Participating in joint venture in the development, production and sales of mineral commodities

Product Description:
• Tantalite Concentrates to be used as raw material for the production of the Ta and Nb value and products
• Tantalum Pentroxide (Ta2O5) with a purity level 99.99% which is a marketable grade
• Niobium Pentoxide (NB2O5) with purity level of 99.00% which is a marketable grade
• Tantalum K-Salt (K2TaF7) powder with purity level of 99.80%

Target Markets:
• The products are destined for foreign markets demanding: Tantalite Concentrate, Tantalum Pentoxide and Niobium Pentoxide powders.
• The Company restarted production of cleaned Tantalite Concentrate using Sulfuric Acid leaching process in order to remove radioactive substances (Uranium and Thorium).
• Market share, which primarily includes Tantalum and Niobium Pentoxide powder, is increasing significantly in recent years. The demand increased from 14% in 2005 to 36% in 2011.

Year 2009: 144.7 tons
Year 2010: 298.6 tons
Year 2011: 187.1 tons
Year 2012: 116.3 tons

Financial History:
Year 2009: Revenues $4mn and EBITDA $1mn
Year 2010: Revenues $7.8mn and EBITDA $2.7mn
Year 2011: Revenues $15.7mn and EBITDA $10.3mn
Year 2012: Revenues $5mn (due to Plant being put on hold for refurbishment).

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Prokhorov’s Onexim Agrees to Buy Kerimov’s Uralkali Stake

Billionaire Mikhail Prokhorov’s Onexim Group agreed to buy Suleiman Kerimov’s stake in OAO Uralkali, bolstering prospects that a standoff over a global marketing venture for key crop nutrient potash will be resolved. Continue Reading →

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Uralchem Owner Mazepin Tipped as Possible Uralkali Buyer

The Moscow Times
Dmitry Mazepin, owner of Russian fertilizer producer Uralchem, has joined the race to take a stake in the world’s largest potash miner Uralkali Continue Reading →

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Polymetal to Buy Kazakh Gold Mine for $500M

MOSCOW | (Reuters) – Russia’s gold and silver miner Polymetal intends to buy a large gold mine in neighbouring Kazakhstan for up to $500 million, around one-third of which could be paid with the firm’s shares Continue Reading →

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Kerimov Sells Alrosa Stake

The Moscow Times Oct 14
Billionaire Suleiman Kerimov has sold his stake in Alrosa, a month before the planned IPO of 16 percent of the diamond producer’s shares Continue Reading →

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Rusnano to Sell Part Stake in Russky Quartz

The Moscow Times
State corporation Rusnano will sell part of its stake in Russky Quartz to the project’s new strategic investor, Japan’s Sumitomo Corporation Continue Reading →

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China Wealth Fund Swaps Uralkali Bonds for 12.5% Stake

China took a 12.5 percent stake in OAO Uralkali (URKA), the world’s biggest producer of potash, giving the nation a bigger say in a global battle for market share and expanding the reach of its overseas agriculture investments. Continue Reading →

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Sechin Interested in Uralkali Stake

The Moscow Times
The state companies Rosneftegas and Rosneft, headed by Igor Sechin, could be interested in the potash producer Uralkali’s assets Continue Reading →

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Report Says Kerimov Could Sell Uralkali Stake

The Moscow Times
Billionaire Suleiman Kerimov may sell his stake in Uralkali, the world’s largest potash miner by output Continue Reading →

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